Toyota Production System

at

TOYOTA KIRLOSKAR MOTOR PRIVATE

LIMITED
 TOYOTA PRODUCTION SYSTEM
AT
TOYOTA KIRLOSKAR MOTOR PRIVATE LTD

CONTENTS:

1 Introduction to Toyota
2 Profile of Toyota Kirloskar motor.
3 Overview of TKM Logistics.
4 Toyota production system practices in TKM.
) Just In Time.
) Kaizen- (Continuous Improvement in logistics)

5 Future Plans.
TOYOTA MOTOR CORPORATION

• Established in 1937 in Japan

• 160 Countries - 5400 Dealers.
• 26 Countries - 46 Plants
• Sales of 15.1 trillion Yen in March 2002
• 247,000 employees worldwide.
• Manufacture of all types of Vehicles
including Luxury Car & Small Car.
 Automakers ranking worldwide based on
vehicle sales
9000
2003 First quarter
8000 Result Toyota – No. 2
N o . o f U n its S o ld (1= 1000 U n its)

7000
6000
5000
4000
3000
2000
1000
0
G M F o rd T o yo ta VW D a im le r PSA H onda N issa n R e n a u lt F ia t
C h rysle r

C om pany

Toyota is 3rd Largest Auto Maker in the World

TKM is the 14th & almost the last automobile manufacturer
entered in Indian automobile industry
 TOYOTA KIRLOSKAR MOTOR
PRIVATE LTD
Establishment : 6th October 1997
Location : Bidadi near Bangalore
in Karnataka State
Start of Production : Dec 1999
Production Model : Multi Purpose Vehicle
Passenger car
Production Capacity : 50,000 Units/year
Investment : US$ 170 Million
(Phase I)
No. of Employees : 2300
 PRODUCTION / SALES Crossed
1Lakh cars
in Sept 03

50000

40000

30000
V olu m e

20000

10000

0
2000 2001 2002 2003

C o ro lla 13 8 3 9000

Q u a lis 2 10 8 6 28509 28989 34000

COMPLETE VIEW OF TKM PLANT
In-house facilities at TKM
Press Shop Weld Shop Paint Shop

Assembly Shop Inspection Area

ISO 14001 WITHIN THE FIRST YEAR
 OVERVIEW OF
LOGISTIC OPERATIONS
TKM’S Logistics concept

• Just in time supply

• Small lot - high frequency delivery

• Palletised cargo

• Standardized packaging
 TKM LOGISTICS OVERVIEW

Delhi Transit Dock (2600 Kms)

North Area - 19 Suppliers
TMC
JAPAN

STM
THAILAND

Pune Transit Dock (900KMS) KUOZUI

West Area - 13 suppliers TAIWAN

SINGAPORE
TKM
(TRANSHIPMENT) TAP
PHILIPPINES
Bangalore Plant
South Area - 28 Suppliers
Chennai Transit Dock (370 KMS)
18 Suppliers

INDONESIA
TAM
 LOCAL SUPPLIERS DISTRIBUTION

Delhi Cross Dock

North Area - 19 Suppliers

Pune Cross Dock

Kanban suppliers- 40
West Area - 13 Suppliers
(74% parts)

Bangalore Plant Chennai Cross Dock

South Area - 28 Suppliers 18 Suppliers
 Logistic System - Milk run system
Conventional System TKM System

SUPPLIER-A

SUPPLIER-A

SUPPLIER-B TKM
SUPPLIER-B TKM

SUPPLIER-C SUPPLIER-C

LOW FREQUENCY HIGH FREQUENCY

BIG LOT TPS SMALL LOT
HIGH INVENTORY LOW INVENTORY
JUST IN TIME
JUST IN TIME Concept

MAKING MATERIAL AVAILABLE TO

NEXT PROCESS

• The right part

• At the right time
• In just the right amount required.
JUST IN TIME Supported by
Procurement Methods for local parts
• Scheduled ordering for far of suppliers with cross
dock.
• Kanban based ordering for nearby suppliers without
cross dock
• Jumbiki ordering

In-house Logistics systems

• Welding (Chorukyu system)

• Assembly (Sequential supply system)

 Cross dock operation for Milk run system

S1 S1
Sub Route 3
Sub Route 1
1 Cross 3 S2
S2
Dock

S3 S3
S4

S1 2 S4

Sub Route 2
S2
S3
 Cross dock operation for Milk run system

Delhi Cross Dock

Main Route

Pune Cross Dock

Main Route Main Route

TKM

Chennai Cross Dock

Optimum Route Planning

122
day trip truck spec cm t
route area supplier C yc
cm t kg route cm t kg type cm t kg %
C S 011 CHEN W 15.744 5535 1-2 C S 01 37 8976 H C V 32 9000 115%
C S 012 CHEN B 0.131 45
JG CHEN B (JG ) 1.500 1770
C S 013 CHEN I 19.500 1627
C S 021 CHEN BT 9.608 516 1-1 C S 02 17.688 1768 LC V 24 4000 74%
C S 022 CHEN R 8.079 1251
C C 011 CHEN A 52.722 6571 1-1 C S 03 52.722 6571 LD V 55 6800 96%
RM CHEN H 0.800 200 - - 0.800 200.0 - - - -
RM CHEN A 0.100 20 - - 0.100 20.0 - - - -
RM CHEN N 0.100 20 - - 0.100 20.0 - - - -
Standardized Truck Timetable
Logistics on fixed time / variable qty basis
RO UTE NO . C S 01
TRUCK TYPE HCV

P lace D ist T im e T /T 4 5 6 7 8 9 10 11 12 13 14 1

C ro ss D o ck 29.A p r 7:30
29.A p r 9:00
6km 0.15h rs
S u p -A 29.A p r 9:15
29.A p r 10:15 1.00h rs
1km 0.10h rs
S u p -B 29.A p r 10:25
29.A p r 10:55 0.30h rs
28km 0.40h rs
S u p -C 29.A p r 11:35
29.A p r 12:35 1.00h rs
35km 1.30h rs
High Frequency Delivery
✦ Delhi & West : 1 times a day
✦ Chennai, South India : 4 times a day
✦ Bangalore : 4 - 16 times a day

TKM

Supplier A Supplier D

Supplier B Supplier C
LOGISTIC CONTROL IMAGE TRANSYSTEM
Joint venture between
TKM LOGISTIC
TKM PROVIDER Mitsui corp. (Japan)
Volume Calculation &
Receiving Plan
TCI (India)

Central Operation Control

Long-Route
Cross-Dock TKM
Suppliers

Short-Route
Suppliers TKM
 Truck Status Control

Detect En-route Problems = Never stop the line

✦ Procedure
Long-Route : Driving-Members call from predefined points
Local-Route : Controlled by Radio-Receiver up to 60km

✦ Visual Control (Status-Board)

Special Design Fleet

Side Loading Method

✦ Wing type truck
✦ Sliding door type
✦ Swing door type

Long Deck Sliding Door : 16 (50cmt)

HCV Sliding Door : 10 (32cmt)
LCV Sliding Door : 4 (24cmt)
HCV Gull-Wing : 5 (32cmt)
LCV Gull-Wing : 3 (24cmt)
 T K M - In ven to ry S tatu s
9

8 -Supplier Delivery &

Quality
improvement
7

5
Stock in D ays

-Milkrun pick up of parts.

- Transhipment of parts
4 to Main truck
- Truck status control.
- Daily arrival of parts
3 - Frequency increase through
Mix Logistics with TKM
Suppliers.
2 - Lot Size reduction
- Double cross docking (Delhi
Daily arrival 1 Day Suppliers)
1 (16 hrs)

Safety Stock 1 Daily arrival 4

Day (16 Hrs ) Hrs (0.25 days)
0 Safety Stock 6
Hrs (0.3 days)
C onventional SV P T K M C urrent TM C T K M Future
System
( Dec ‘ 99 ) ( Y 2003 ) ( Max 2 Hrs ) (Y 2004 –Oct )

Inventory of far off supplier with Cross dock operations – Delhi & Pune
JUST IN TIME

KANBAN SYSTEM
 KANBAN OPERATION OVERVIEW
TKML SUPPLIER

11

12

CHECK

PUR
SHEET

GRN IN
APL 1-2-2
KBN NO. QTY
KBN
A/C
111 2
222
SYS
222 1
333 4

PAYABLE
XXX Y
KBN
222
1 1

1 1

SUPPLIER LINE SIDE

1 1

10
10
LINESIDE CHECK
SHEET

1
APL 1-2-2
KBN NO.
QTY

2 KBN
KBN
111
222
333
2
1
4
222222 XXX Y

KANBAN
KBN POST
111

9 KBN
222

KANBAN SORTING ROOM

9
8
APL STTI TGK DNKI NTTF
3 INCOMING KANBAN
TIME LOC1LOC2LOC3LOC4
TRUCK1
TRUCK2
TRUCK3

4
CHEC
K
SHEE
T
7
APL
1-2-2
K

EMPTY BOX

5 6
LOCAL PARTS KANBAN SAMPLE

SUPPLIER
INFORMATION :
TG KIRLOSKAR
TKM
KEY CODE :1234567890
T004-A PART DETAILS :
GLOVE COMPARTMENT

PROCESS CODE : LOCATION CODE :

ASSEMBLY T2R-2

QTY/BOX
55581- 0B010- 00
10

PACKING CODE :
PB10123
516 SEQ NO
1
DOCK
01
 PARTS READY FOR DESPATCH AT SUPPLIER SIDE
(BANGALORE SUPPLIER CASE OPERATING WITHOUT CROSS DOCK)
LOADING / UNLOADING USING FORK LIFT

LABELS FACING OUTSIDE

PARTS PALLETISED
Parts stacking at PC Zone ready for in-house logistics:
•Parts are stored at PC Zone at predefined locations Line wise or
process wise.
 T K M - In ven to ry S tatu s
9

6
S tock in D ays

4
Kanban System
3 -1~ 16 delivery / day
- Truck status control
2 by wireless – Time - Frequency increase
control with Mix logistics of
TKM Suppliers
1 Safety Stock Avg
6 Hrs (0.3 days)

0 Safety Stock Avg Avg 2 Hrs

4 Hrs (0.25 days )
C onventional System T K M C urrent TM C
( Y 2003 )

Inventory of Bangalore supplier ( No Cross dock operations)

JUST IN TIME

JUMBIKI SYSTEM

( Sequential Procurement )
JUST IN TIME
Jumbiki System

• System for total elimination of Inventory.

• System to supply Parts directly from

supplier to Assembly line according to
sequence of production.

• Suitable for bulky Parts with more variants

& supplied by nearby supplier
e.g- Seats, Door Trims, Carpets (Araco)
CENTRAL CONTROL ROOM (CCR)
JUMBIKI SYSTEM

Line In - Based on Production Leveling Assembly

ASSEMBLY LINE

Information to CCR

Receiving and
Fax to Supplier
Supply to Line

Preparation at Supplier &

Transport to TKM

Pre defined Time Scale based on tact time

 JUMBIKI SYSTEM

CONVENTIONAL SYSTEM JUMBIKI

Model A Model B Model C Model A Model B Model C

Assembly
Assembly Line
Line

For Model A For Model B For Model C

A1 B1
A1 A1 A1 B1 B1 B1 C1 C1 C1

A2 A2 A2 B2 B2 B2 C2 C2 C2
TPS A2 B2

A3 B3
A3 A3 A3 B3 B3 B3 C3 C3 C3

Seats received from supplier

Stock of each set in sequence of Production Plan
JUMBIKI PARTS RECEIVED
JUMBIKI SEAT AT LINE SIDE
JUST IN TIME

IN-HOUSE
LOGISTICS
JUST IN TIME
INHOUSE LOGISTICS (Chorukyu System)
WELDING SHOP
CONVENTION SYSTEM TKM SYSTEM

Manufacturing
Manufacturing

TPS
A1 A2 A3 A4
A5 A6 A7 A8

A1 A2 A3 A4

A5 A6 A7 A8
INHOUSE LOGISTICS (SMALL LOT SUPPLY)
INHOUSE LOGISTICS – ASSEMBLY SHOP
SEQUENTIAL SUPPLY SYSTEM
INHOUSE LOGISTICS – ASSEMBLY SHOP
SEQUENTIAL SUPPLY SYSTEM
SUPER FLEXIBLE ASSEMBLY LINE

TKM IS CHALLENGING NEW CONCEPT OF SUPER FLEXIBLE LINE

THAT IS MIXED PRODUCTION OF MPV (frame model) AND

PASSENGER CAR (monocock model) ON SINGLE PRODUCTION LINE,

BY QUICK LAUNCHING OF NEXT MODEL ON THE EXISTING

PRODUCTION LINE.
 KAIZEN
(CONTINUOUS IMPROVEMENT)
Kaizen based on practice of manufacturing
Shooter system to maintain FIFO

Before After

•FIFO not followed •FIFO achieved

•Mikara not established •Mikara established
•Unsafe movement of F/L • F/L movement standardized
Kaizen based on practice of manufacturing
Pallet, Dolly, Flow rack to reduce handling
Before After

•Double handling of Parts •Direct supply of parts

•Generates waiting time •zero waiting time
•Fatigue while parts picking •Workability improved
•Space reduced (210 Sq.mt)
Kaizen by Suggestion from Team members
Combined Logistics
Collapsible packing concept

The space saved by this kind of packing is

used to transport service parts and CBU
 KAIZEN IN PACKING AREAS

1
Plastic Caps of hose
flexible eliminated

2
Achieved 99%
returnable packaging
FUTURE PLANS
E - Kanban Supplier
operations

SUPPLIER

S1 S2 S3 S4 S5
SERVICE
SERVICE
PROVIDE
PROVIDE S8 S9 S1 S1 S1
R 0 1 2
R CROSS
CROSS
DOCK
DOCK
Download
Kanban
data

TKM in-house
operations
Cross Dock
operations
TKM e Kanban
information to
Suppliers/
P Inhouse Bar Cross Dock CROSS DOCK
Coded

W
PC
Kanban
Kanban S1 S2 S
3
S4 S5

Z
S S S S S
Room 1 2 3 4 5
S8 S9 S S1 S1
S S S S S 10 1 2

O
8 9 1 1 1
Store Cards 0 1 2
T
Download
N Insert
cards
Kanban data
A
E Store
Parts
Receive Material
1st Step Mixed Logistics

Increase frequency Mixed Logistics

Concept
Reduce lot size

Purpose:
1) Share logistics between TKM & Supplier.
2) Reduce lot, increase delivery frequency and finally
reduce inventory.
3) Reduce transportation cost.
4) Mutual development and benefit between TKM &
supplier.
Example Mixed Logistics Image

TKM - TKAP Mixed Logistics

 Closing word

We live in an age of constant change

‘Today's perfection is tomorrows

mediocrity’

We need to realise & improve

 THANK YOU
FOR YOUR ATTENTION

TOYOTA KIRLOSKAR MOTOR